UPDATE: Cantor Fitzgerald Reduces PT to $37 on Endo Pharmaceuticals Holdings; Settlement Less Favorable Than Hoped

Cantor Fitzgerald reiterates its Hold rating on Endo Pharmaceuticals Holdings

Cantor Fitzgerald notes, "We had modeled a 4Q:14 generic launch and have updated our numbers to reflect the most conservative scenario of a Sept. 15, 2013 Watson

NC) generic. We have also taken 2013 Lidoderm revenues down by an additional $96M to account for the 8 months of product the company will provide to Watson in 2013 that can be re-sold to the trade ($12M per month). Endo preserved additional upside if Lidoderm's ANDA approval is delayed into 2014-2015 (and would pay Watson ~$6.7-7.1M/month during this period). If there is no third generic player Endo may collect a 25% royalty off Watson Lidoderm gross profits and/ or launch its own authorized generic 7.5 months after Watson, but we are not assuming these scenarios at this time." ENDP closed at $34.20 on Tuesday.